Deutsche Bank Cuts Delta Air Lines to 'Hold'
Deutsche Bank downgraded Delta Air Lines (DAL ) to hold from buy.
On Wednesday, the company posted a fourth-quarter loss of $1.71 (excluding items) on a 2.7% operating revenue rise. Analyst Susan Donofrio says management is now working on a new strategy plan (due in July) which she thinks will lessen the chance for a near term pilot deal. Additionally, she believes aggressive capacity growth and increased competition against JetBlue (JBLU ) should also hold back earnings and stock performance as well.
She sees $2.60 first-quarter loss per share, and widened her $2.40 2004 loss estimate to $5.25 loss. The analyst cut her $28 price target to $13.